Is This the End of Small EVs? The Market Says Yes

• Electric SUVs have taken market preference over small EVs: longer ranges are their forte when compared to shorter average ranges of small EVs; they are reputedly spacious, and profits from electric SUV sales are heftier for manufacturers.
• A greener yet costlier option, electric SUVs do come along with concerns. As small EVs, they are costlier, and their reception is still hanging.

What seemed not long ago to be the future were small electric cars. In fact, with fuel prices rising, emissions laws becoming stricter, and a worldwide bent towards sustainability, compact EVs were expected to rule the city streets. But that was not meant to be. In actuality, the electric SUV has now taken centre stage, and the roads are now filled with bigger, bulkier, and more muscular vehicles.

So, what changed? Why the pull to SUVs? What does this all entail for the future of electrics?

The Rise of the Electric SUV

Over the years, SUVs have been one of the most favoured body styles among car buyers, and that has continued into electrics. Car makers are concentrating more on electric SUVs, promising them even bigger batteries, longer ranges, and the trappings consumers have come to love.

Take India, for instance. The electric vehicle market in the country is booming, and sales in just the last year grew by 90%. A leading player in this industry is Tata Motors, which has brought over 63,000 electric cars and SUVs into the market, representing 71% of the segment. MG Motor India and Mahindra have also been able to stake out their shares in the buoyant demand here.

While globally, the Model Y of Tesla was a top seller, such success was not to be found everywhere. The Model Y has found favour in the UK, but sales have declined by a whopping 71% in Australia and 76% in Germany. With its aggressive pricing and government incentives, the Chinese EV market remains vibrant. For instance, in February 2025, nearly half of all the new cars that were sold in China happened to be electric.

Why People Prefer Electric Utility Vehicles Over Tiny EVs

Electric SUVs outnumber small EVs for some very simple but critical reasons:

• Space and Comfort: Bigger cars are generally spacious for transporting passengers and luggage.
• Greater Battery Range: Larger SUVs fit bigger batteries, which means they can travel longer distances without refuelling.
• High Profit Margins for the Car Companies: Companies feel safer making more expensive SUVs than small, cheap EVs.
• Symbol of Prestige: SUVs now are some sort of iconic symbols of wealth and success, and hence become more appealing.

They Try Small Electric Vehicles

Once upon a time, small EVs going by the names Renault Zoe, Nissan Leaf, and Fiat 500e seemed like perfect urban mobility solutions. That doesn’t hold.

• Price Concern – It is not that cheap to manufacture small EVs, especially when the prices of batteries soar.
• Few subsidies offered by the government – few governments now have begun reducing subsidies for small electric vehicles, rendering EVs less affordable.
• Consumer Reluctance – Some drivers fear whether it is a question of whether a small EV has sufficient power for a highway drive, or whether they would find it easy to locate charging stations.

Environmental Dilemma of Electric SUVs

Here’s the twist: Electric SUVs are environmentally better than gas-guzzling ones, but they have their own energy and resource requirements. Larger batteries require more lithium, cobalt, and nickel, which means more mining – an industry that has its own environmental and ethical concerns.

Experts say that if more people opted for a smaller EV as opposed to an SUV, the overall carbon footprint of the industry would have been much lower. But that shift is not happening shortly, given the increasing demand for big electric vehicles.

Can Small EVs Make a Comeback?

Not the end of the line for small electric cars; they still find some traces of thriving places.

Cities are putting tougher traffic restrictions, congestion charges, and low-emission zones into the rollout; hence, these factors make small-sized, efficient EVs more practical. The Wuling Hongguang Mini EV has proven that when the price is right, budget-oriented mini micro-EVs can indeed create a market in China, for example.

Making small EVs affordable, better battery efficiency, and meeting new expectations would be the final crack for small EVs for a real comeback. Small electric cars could get another chance if they can do that.

More SUVs and Fewer Small EVs

Even as increased efforts are being made all over the world to encourage silent transport, the population still has a choice of bigger cars. 2024 sees an increase in the number of SUVs sold worldwide, with 52% of vehicles sold globally being classified as SUVs. They were followed by 51% in 2023 and then 49% in the year 2022. Though most of them are powered by petrol, demand for electric SUVs is rising.

The question is: are we seriously going into a more sustainable future or just switching some fat-guzzlers with others?

So, What’s Next for the EV Market?

For a while, it looked like small electric cars would take over. But today, it has become clear that SUVs have won the popularity contest. In places like Japan and Germany, sales of standard EVs have even started dropping while SUV sales continue to rise. In Europe, SUVs are now outselling electric vehicles altogether.

Compact cars aren’t dead; they’re just killing the SUV trend! The future of small EVs all depends on innovation, government support, and whether or not consumers are willing to downsize.